You are right!... The first Resmed Quattro mask might cost about $25,000 to build, then the mold goes through 1-2 rounds of refinement. Mask 10 and on is made for $10 each. DME might pay $125...We pay $175 etc...teachcsg wrote:Stu is correct.
Most DMEs deal with one manufacturer due to volume discount. The company I work for deals primarily with Respironics as well. Unfortunately, with lowering reimbursement rates some products are too expensive for the company to provide. It seems like Resmed prices their machines and mask quite high-they know they have a very good product and dont allow for much discount. There was a lawsuit going on recently where a small manufacturer of cpap mask was in a fight with Resmed over their mask and pricing-they priced their mask very low. I did not read too much into the lawsuit but the small company had taken out a full page ad in an industry magazine showng that it typically cost all manufacturers (including resmed and respironics) a very small amount (I forget the figure) to make a mask it seemed like Resmed had a problem with that.
So, all that to say-some DMEs have to be exclusive to stay in business.
I called Edge park medical- they only supply accessories now, not the base machine. I called another local DME supplier in FL, much better attitude, told me to call DME #1 back tell them you are going against medical advice and returning the unit. DME #2 will give me S9 autoset if the Rx states it exactly, no upcharge, code E601 etc...thats my ticket!!
I asked the Manager of DME #1, why they fought me tooth and nail, she said, Resmed builds a great machine, buy they are not DME dealer freindly, no price breaks on volume, if we do not upcharge you, we lose $200 getting you an autoset, since we are a Respironics dealer... She said Resmed is the Iphone of the apnea business, Respironics is the droid... Margins very thin with Resmed, pretty good with Respironics....
Vince